Balance Sheet

A balance sheet is a financial statement that details an organization’s assets, liabilities, and shareholder equity. A balance sheet is named as such because the assets should always equal the liabilities and owner equity.

Considered one of the three core financial statements (the others being an income statement and cash flow statement), balance sheets are vital in determining a company’s ability to fulfill operating needs and pay-off debts, along with providing intel to investors looking to purchase stock.